Maxeon, SunPower resolve supply agreement dispute
Maxeon has settled a supply agreement dispute with SunPower, the company it spun off from three years ago, the companies announced.
As part of the amended agreement, Maxeon will supply modules to SunPower through February 2024. SunPower will maintain its exclusive right to distribute M-Series products in the U.S. until March 31, 2024.
Maxeon will be released from non-circumvention obligations with respect to SunPower dealers and will receive warrants to purchase SunPower common stock in a private placement, subject to the provisions of the agreement, according to a press release. Additionally, all outstanding disputes regarding the Master Supply Agreements between the two companies have been resolved.
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The tiff has had a significant impact on Maxeon’s financial performance in the most recent quarter, as noted by CEO Bill Mulligan. Maxeon stock was trading at an all-time low of $6.10 per share at the close of the trading day on Nov. 15, down from an all-time high of $36.52 set in May.
In October, Mulligan said the “breached contract” under a master supply agreement with SunPower that resulted in paused shipments in July.
